Idea Cellular Q3 profit after tax seen up 11% to Rs 189 cr

Aditya Birla group company Idea Cellular is set to announce its results for the quarter ended December 2010. According to CNBC-TV18 estimates, its profit after tax is expected to go up by 11% to Rs 189 crore from Rs 170 crore (YoY) and Rs 179 crore (QoQ).

Revenues are seen going up by 22% to Rs 3,844 crore from Rs 3,150 crore (YoY) and up by 5% from Rs 3,659 crore (QoQ).

Operating profit margin is likely to be at 24.1% versus 25.8% (YoY) and 24% (QoQ).
 
Expectations

* Revenues growth due to growth in subscriber base and marginal uptick in MOU.
* Margins may be stable due to delay in launch of 3G services. Idea will launch 3G in Jan-Mar 2011 and thus 3G related operating expenses not incurred
* Mobile tariff growth of 8.1%
* MOU to grow marginally 0.2% QoQ
* ARPU decline 2% QoQ at Rs 164 , impacted by RPM decline.
* Margins in established circles at 29.6% (up 50 bps QoQ)
* EBITDA loss in new circles at Rs 140 crore
* New players like Uninor, Etisalat, Videcon continue to gain market share.
* New players grew at average rate of 12.5-20% versus current incumbents growing at 2-3% mom

Subscriber addition (in million)
*November 10- 78.8
*October 10- 76
*September 10- 74.2
*August 10- 76.9
*July 10- 70.7
*June 10- 72.5